Kicking Away the Ladder: Development Strategy in Historical Perspective

Introduction

In his book "Kicking Away the Ladder," Ha-joon Chang argues that the current global economic system is rigged in favor of rich countries and against poor countries. He shows how rich countries have used a variety of policies to protect their own industries and prevent poor countries from catching up. These policies include tariffs, quotas, subsidies, and intellectual property rights.

Chang argues that these policies are not only unfair, but they are also harmful to the global economy as a whole. They prevent poor countries from growing and developing, which reduces demand for goods and services from rich countries. This leads to slower growth and higher unemployment in rich countries.

The Ladder of Development

Chang uses the metaphor of a ladder to illustrate the process of economic development. He argues that poor countries need to climb the ladder of development in order to achieve prosperity. The rungs of the ladder represent different stages of development, from subsistence agriculture to industrialization.

Rich countries have already climbed the ladder of development, and they are now trying to kick it away so that poor countries cannot follow them. They do this by using the policies described above to protect their own industries and prevent poor countries from gaining a foothold in the global economy.

The Case for Industrial Policy

Chang argues that poor countries need to adopt industrial policies in order to climb the ladder of development. Industrial policies are government policies that are designed to promote the development of specific industries. These policies can include tariffs, quotas, subsidies, and other measures.

Chang argues that industrial policies are necessary because they allow poor countries to protect their infant industries from competition from more advanced countries. They also allow poor countries to build up their domestic markets and create jobs.

The Role of the State

Chang argues that the state has a crucial role to play in promoting economic development. He rejects the neoliberal view that the state should play a minimal role in the economy. Instead, he argues that the state should play an active role in promoting industrial development, providing education and healthcare, and regulating the economy.

Conclusion

Chang concludes by arguing that the current global economic system is unsustainable. He calls for a new global economic order that is based on fairness and cooperation. He believes that this is the only way to achieve sustainable global growth and development.

Why You Should Read This Book

"Kicking Away the Ladder" is a must-read for anyone who is interested in economic development. Chang provides a clear and concise analysis of the current global economic system and how it works against poor countries. He also offers a number of政策建议for how poor countries can climb the ladder of development.

This book is essential reading for anyone who wants to understand the challenges facing the global economy and how we can create a more just and sustainable world.